{"id":120542,"date":"2021-07-08T02:21:06","date_gmt":"2021-07-07T19:21:06","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/increasing-property-prices-a-key-driver-in-worsening-wealth-inequality-mas-chief\/"},"modified":"2021-07-18T17:03:02","modified_gmt":"2021-07-18T10:03:02","slug":"increasing-property-prices-a-key-driver-in-worsening-wealth-inequality-mas-chief","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/increasing-property-prices-a-key-driver-in-worsening-wealth-inequality-mas-chief\/","title":{"rendered":"Increasing property prices a key driver in worsening wealth inequality: MAS Chief"},"content":{"rendered":"


\nHe noted that as people\u2019s income increase, they also tend to allocate more of their disposable income to acquiring property, which\u00a0leads to rising house prices and stimulates investment demand for residential properties.
\nRavi Menon, Managing Director of The Monetary Authority of Singapore (MAS) believes that rising property prices is one of the key drivers in the worsening wealth inequality across many parts of the world \u2013 a trend he considers to be worrying, reported TODAY.
\n\u201cMarket processes are allocating an increasing share of national income to income from property and other financial assets and a reducing share to income from work,\u201d he said Ravi Menon during a lecture series organised by the Institute of Policy Studies, a think tank under the National University of Singapore (NUS).
\n\u201cThis is a development that we should be deeply concerned about,\u201d he added as quoted by TODAY.
\nWealth inequality can also undermine meritocracy, which refers to a social system where people are rewarded or gain success based on their hard work, talent and abilities.
\n\u201cBecause the accumulation of wealth can far exceed the differences in income from differences in abilities and performance, because of the way prices of financial assets and real estate moves, with little effort, one becomes extraordinarily rich\u2026 And so, wealth inequality creates a sense of unfairness,\u201d explained Menon during a question-and-answer session.
\nWith growing land prices driving up property values, wealth has become more unequally distributed compared to income in almost all societies, he said.
\nHe noted that as people\u2019s income increase, they also tend to allocate more of their disposable income to acquiring property within prime locations.
\nAlso read:\u00a0Tight Budget? Here\u2019s How You Could Still Afford to Live in Prime Districts
\nThis leads to rising house prices relative to income, which in turn stimulates investment demand for residential properties.
\n\u201cGlobally, property has become an investment asset class,\u201d said Menon, adding that getting on the property ladder to be rich has become a trend across major urban centres in the world, including Singapore.
\n\u00a0
\nLooking for a property in Singapore? Visit PropertyGuru\u2019s\u00a0Listings,\u00a0Project Reviews\u00a0and\u00a0Guides.
\nVictor Kang, Digital Content Specialist at PropertyGuru, edited this story. To contact him about this story, email:\u00a0victorkang@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…Increasing property prices a key driver in worsening wealth inequality: MAS Chief<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

He noted that as people\u2019s income increase, they also tend to allocate more of their...<\/p>\n","protected":false},"author":1,"featured_media":120543,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-120542","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-property-news"],"jetpack_featured_media_url":"https:\/\/i2.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2021\/07\/property-market.original.jpg?fit=820%2C410&ssl=1","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-vme","jetpack-related-posts":[{"id":93195,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-calls-for-caution-amidst-euphoria-in-singapore-property-market\/","url_meta":{"origin":120542,"position":0},"title":"MAS calls for caution amidst \u201ceuphoria\u201d in Singapore property market","date":"July 5, 2018","format":false,"excerpt":"\r Property prices in Singapore have surged by 9.1% since mid-2017. The \u201ceuphoria\u201d in the Singapore property market should be met with caution, according to Monetary Authority of Singapore (MAS) managing director Ravi Menon. Speaking at an annual report media briefing on Wednesday (4 July), he noted that the property\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":21108,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/why-singapores-property-cooling-measures-wont-be-removed-anytime-soon\/","url_meta":{"origin":120542,"position":1},"title":"Why Singapore\u2019s property cooling measures won\u2019t be removed anytime soon","date":"July 27, 2016","format":false,"excerpt":"\r \u201cThere is still some way to go\u201d Is it the right time to remove the cooling measures in Singapore? It is not the right time to ease the property cooling measures, revealed the Monetary Authority of Singapore (MAS). \u201cThere is still some way to go, to entrench the gains\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":28355,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/singapore-house-prices-fall-by-most-in-seven-years\/","url_meta":{"origin":120542,"position":2},"title":"Singapore house prices fall by most in seven years","date":"October 3, 2016","format":false,"excerpt":"\r Singapore home prices have dropped by the most in more than seven years as developers offered discounts amid signals from the government that it will not roll back property curbs initiated in 2009.An index tracking private residential prices fell 1.5 per cent in the three months ended September 30\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":20856,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/not-time-yet-to-lift-property-cooling-measures-mas\/","url_meta":{"origin":120542,"position":3},"title":"Not time yet to lift property cooling measures: MAS","date":"July 26, 2016","format":false,"excerpt":"\r Singapore\u2019s property cooling measures won\u2019t be removed anytime soon. It is not the right time to ease the property cooling measures, revealed the Monetary Authority of Singapore (MAS). \u201cThere is still some way to go, to entrench the gains in stabilising the property market and restoring household debt sustainability,\u201d\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":99766,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-checking-impact-of-new-property-curbs\/","url_meta":{"origin":120542,"position":4},"title":"MAS checking impact of new property curbs","date":"October 12, 2018","format":false,"excerpt":"\r The central bank\u2019s head thinks it will take at least two to three quarters to fully understand the implications of the latest property cooling measures. After the government imposed a \u201cdecisive set of measures\u201d on 6 July, the Monetary Authority of Singapore (MAS) is keeping a close watch on\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":25289,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/mas-wont-ease-property-cooling-measures-anytime-soon\/","url_meta":{"origin":120542,"position":5},"title":"MAS won\u2019t ease property cooling measures anytime soon","date":"September 7, 2016","format":false,"excerpt":"\r The revised mortgage refinancing rules do not represent an easing of the property cooling measures, said MAS Managing Director Ravi Menon. The Monetary Authority of Singapore (MAS) will not ease the property cooling measures which have caused home prices to drop by almost 10 percent anytime soon, reported Bloomberg.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120542"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=120542"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/120542\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media\/120543"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=120542"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=120542"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=120542"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}